Introduction
The range of credit options available to the private motorist has expanded considerably in recent years, and a number of direct lenders have been targeting this sector by offering specially packaged car loans. However, the number of providers operating in this sub-market remains small and their products have so far had only limited success. This brief examines the reasons behind this.
Scope
Provides a comprehensive assessment of recent growth in the unsecured car loans market and examines performance of market drivers
Assesses different marketing techniques employed by unsecured car loan providers currently operating in the market
Draws on the data from a number of secondary and primary sources, including industry interviews
Provides two scenario-based forecasts for the future performance of the unsecured car loans market
Report Highlights
New car registrations and used car sales have been buoyant in recent years, but the market has also witnessed dramatic falls in prices of vehicles. As a result, despite the increasing number of cars being sold, the potential value of the total new and used car market has fallen since 1999
The UK motor finance market is very competitive. In addition to the traditional point of sale motor finance, an emerging competitive force in the form of secured lending has also been encroaching on unsecured car loan providers' customer base. As a result, gross advances in unsecured car loans have decreased since 1999
Currently, unsecured car loan providers employ two different marketing techniques in the promotion of their products. However, the extremely commodified nature of the unsecured personal loan marketplace has made differentiation on feature other than price problematic for lenders.
Reasons to Purchase
Comprehensive evaluation of the unsecured car loans market and its drivers enables you to assess the potential of this sector
Analysis of competitors' marketing techniques provides you with tools to design your own strategy
Datamonitor's five-year scenario-based forecasts give you an insight into the future of the unsecured car loans market
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